Zero Hedge: China Lists The Three Conditions To Agree To Trade Deal
n an unusual move, the Chinese delegation has come clean to the domestic press about Beijing's remaining trade-deal related demands, exposing steep divides that could make it a final deal impossible for Trump, who has repeatedly said he will only accept a "great" deal.
Unsurprisingly, Liu He, the leading Chinese trade negotiator, confirmed what Beijing has intimated time and time again:
That without the complete removal of all trade-war related tariffs, Beijing will not remorse a deal.
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WNU Editor: China is demanding (and threatening) the U.S. that when it comes to trade, they want a return to the status quo. It is not going to happen. The U.S. economy is booming, there is full employment, and U.S. wages are for the first time in decades increasing. In this environment there is no reason or motivation for the White House to compromise on trade, let alone capitulating completely to Beijing's demands. As for China, economic growth is decreasing, foreign investment has dropped significantly, technology agreements with other countries and foreign companies have literally stopped, and there is a growing reluctance in Asia and elsewhere to embrace China as a trading partner. So why the intransigence in Beijing? Why the unwillingness to compromise? Why be exposed in a trade war where they have everything to lose? Since the beginning of the Trump Presidency this blog has stated repeatedly that China has miscalculated the impact of President Trump's election, and more specifically, the determination of this President to change the status quo when it comes to trade. We are now seeing the consequences of this miscalculation. I do not know who is advising Chinese President Xi to pursue this path, but he has made a serious mistake, and it is going to damage him politically in China. The question is when will he fold, and when will he make the necessary compromises. My prediction. He will do so before the 2020 U.S. Presidential election. If he choose not to, we will then be entering a new era. Tensions between the U.S. and China will increase, and these differences will be translated into other areas such as border disputes, Taiwan, military build-ups, non-economic threats, and an unwillingness to work together in solving international disputes and crisis that have nothing to do with bilateral U.S. - China relations.The ball is now in Beijing's court.
More News On China's Trade Conditions
China outlines three disagreements in US trade talks -- Malay Mail/AFP
China will not flinch in the face of U.S. pressure, top negotiator says after talks -- The Washington Post
China will ‘not flinch’ in face of US pressure, chief negotiator says as talks end -- The Independent
China vows not to compromise on principles as US trade talks end -- Al Jazeera
China’s Vice-Premier Liu He says ‘small setbacks’ will not derail trade war talks -- SCMP
3 comments:
WNU Editor,
Your editor comment is essentially spot on. The current deal would essentially allow China to lock in their gains while allowing the US some measure of face saving. In other words, this is about as good as its going to get for them should Trump remain POTUS.
It appears that they have staked their position on Trump being voted out of office, impeached, or removed from office another way. Those who are to greedy risk losing everything. Ideology can cause smart people to make bad decisions. I think we are seeing this on the part of China's leaders.
Bob,
I'm not sure what "..." actually means. Can you clarify?
If you are "not sure what "..." actually means"? Before I clarify, tell me, what do you think it means?
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